Today, industrial furnaces
are employed by a variety of industries right from manufacturing, iron and steel making, glass making, non-ferrous metals production, to calcination in cement production, and ceramic processing. According to Allied Market Research, the global industrial furnaces market size was valued at USD 10,958.5 million in 2018 and is projected to reach USD 16,996.5 million in 2026, growing at a CAGR of 5.4 percent from 2019 to 2026.
To use heat at a most effective level so as to minimize the losses has been the major objectives of using an industrial furnace, while controlling and managing the diverse phases, i.e. liquid, gas or solid moving at various speeds at different temperatures. The market is divided depending on furnace type such as gas/fuel operated industrial furnace and electrically operated industrial furnace, wherein, the gas/fuel operated industrial furnace segment is anticipated to dominate the global market.
Automotive and Steel Industry Giving a Boost to Industrial Furnace Market
Owing to expansion of the automotive and steel
sector in the region, reports suggest that Asia-Pacific region is expected to experience high growth during the forecast period. Moreover, another factor fueling the industrial furnaces market growth in the region is the growing investments in construction activities and surge in mechanical and manufacturing equipment manufacturers in the emerging markets. While if we look at the market leaders, European players are expected to dominate the market throughout the forecast period.
The major driving factors attributing to the growth of the industrial furnaces market include the recurring demand for iron and steel which is accompanied by other significant materials and metals, rise in adoption of electric industrial furnaces and increase in demand for lightweight vehicles, and technological advancements.
Furthermore for assembling, many automotive component producers utilize industrial furnaces to manufacture and heat treat metallic automotive parts. The lightweight metal components manufacturing in the automotive industry and its growth in production and sales of automobiles significantly aids the market’s growth bandwagon.
Role of Technology
If we talk about the advancements in technologies, the rising adoption of new age technologies such as industry 4.0 and the industrial internet of things (IIoT) have transformed the entire scenario of industrial furnaces. Thus, adopting these technologies will offer an edge to manufacturers of industrial furnaces, who adopt advanced technologies at an early stage.
With a lifespan of approximately 10-15 years, the industrial furnace is a one-time investment for any manufacturing plant with a low replacement rate. Hence, this might be a hurdle for players in the market. So to strengthen their market outreach and sustain the stiff competition in the market, the major players are increasingly adopting key strategies such as acquisition.